2021 CFA Level I Exam: Study Session 7. Financial Reporting and Analysis (2) - Reading 23. Understanding Cash Flow Statements

Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.

	1. Classification of Cash Flows and Non-Cash Activities a. compare cash flows from operating, investing, and financing activities and classify cash flow items as relating to one of those three categories given a description of the items; b. describe how non-cash investing and financing activities are reported; c. contrast cash flow statements prepared under International Financial Reporting Standards (IFRS) and US generally accepted accounting principles (US GAAP);
	2. Preparing the Cash Flow Statement d. distinguish between the direct and indirect methods of presenting cash from operating activities and describe arguments in favor of each method; e. describe how the cash flow statement is linked to the income statement and the balance sheet; f. describe the steps in the preparation of direct and indirect cash flow statements, including how cash flows can be computed using income statement and balance sheet data; g. convert cash flows from the indirect to direct method;
	3. Cash Flow Statement Analysis h. analyze and interpret both reported and common-size cash flow statements; i. calculate and interpret free cash flow to the firm, free cash flow to equity, and performance and coverage cash flow ratios.

Thanks again for your wonderful site ... it definitely made the difference.

No flashcard found. Add a private flashcard for the reading.